Divide and conquer
Customer segments within travel hubs are constantly evolving.
Passengers, and even non-passenger hub users, can be segmented into various groups, typically by demographics, such as gender and age, by purpose of trip, and group composition. Each segment will come with their own specific requirements. For example, business travellers who are typically frequent flyers usually care little for the retail offer and look to utilise the lounges. A family with young children going on holiday will benefit from family-oriented facilities, such as play areas and care facilities.
The identification of customer segments enables hubs to incorporate elements of diversity and inclusion. For example, users who are physically or neurologically impaired will require different assistive services. Similarly, cultural preferences and dietary requirements must also be considered for example, multi-faith rooms, sensory rooms, or simply through offering cuisines that celebrate the diversity of cultures. Istanbul Airport (IGA) was the world’s first airport to receive ACI’s new accessibility accreditation. The airport offers many free services which include tactile paving: ‘Very Special Guest Rooms’, to provide a calm environment for those who are neurodivergent; special service points; and private dining booths.
How has this changed over time?
As economies and cultures evolve, so too does consumer behaviour.
The rise of business-leisure travellers created the portmanteau ‘bleisure’ travellers. With more flexibility around working, such as hybrid workplace models, workers have much more choice in terms of when and where they work. This means that these travellers no longer conform to the norms of traditional business passenger behaviour, but instead exhibit behaviours that may be more aligned to holiday makers. This means that airports have to combine the efficiency of business with the indulgence of leisure to cater to this growing group.
Millennials are arguably the most commercially significant group given their frequent travel, volumes, and rising spending power. This generation presents a vast opportunity for businesses to tap into their unique preferences and capture their attention in the highly competitive marketplace. With their strong desire for personalised experiences, emphasis on sustainability, and reliance on technology, airports must adapt to meet their evolving needs. Engaging millennials through targeted marketing campaigns, seamless digital experiences, experiential offerings, and socially conscious initiatives will not only attract their patronage but also foster long-term loyalty and advocacy.
Regional differences must also be factored into meeting the requirements for different passengers. On top of cultural needs, different regions unsurprisingly have different consumer behaviours. Traditionally, Chinese passengers were the highest spending at airports, often having high engagement within the luxury offer. However, with strict government restrictions on travel, Chinese passenger volumes have dwindled dramatically all over the world. With higher airfares, reduced flight schedules, and arduous processes for getting or renewing a passport, Chinese consumers now looked inwardly. Hainan has been a shining star for domestic tourism provided its strengths in the luxury space and duty free shopping. Will these advancements take a chunk of the market share away from Western world?
Luxury spend in the Middle East is witnessing an explosive rise, attributed to a wealthy and growing young population that is tech-savvy and influenced by online content. Middle Eastern passengers could see themselves become a major driver of revenue for airports in the luxury space, especially as the volumes of these younger groups who wish to explore the world increases. Airports will be required to stay on top of these changes and understand the commercial trends happening in these regions and cater to those users. Finnair and Helsinki airport, for example, tailored their services to target Asian consumers by offering Asian cuisines and subtitles or dubbings for the in-flight entertainment. On top of that, many of the airlines ground staff are fluent in Chinese, Japanese, or Korean to accommodate such passengers.
What can Pragma do?
We have helped many of the world’s leading travel hubs develop user segmentation. We provide a non-partial approach to data collection and analysis to inform our recommendations on space programmes, commercial layouts, passenger flows, concepts, themes, brands, and price positioning that foster an environment that can meet all user group requirements, enhance the overall experience, and optimise revenue.
Alexander Foy